PARIS, July 28 Dassault Aviation (AVMD.PA) head
Charles Edelstenne said Safran (SAF.PA) was holding up talks to
swap assets with Thales (TCFP.PA) in a government-backed deal to
rationalise the two companies' defence businesses.
"Every time Thales proposes a solution, Safran refuses
everything," Edelstenne told a news conference on Thursday.
"Thales makes an effort and it's always 'no'."
"The valuations are at a level that is a bit extraordinary,"
Indsutry sources say that talks have hit an obstacle over a
cash supplement which Safran wants Thales to pay for its
optronics business as part of the deal.
Dassault Aviation is Thales' largest private shareholder,
with a 26 percent stake.
(Reporting by Tim Hepher; Editing by James Regan)